Brussels (Brussels Morning Newspaper) – A plan to circumvent Hungary’s long-held veto on €6.6 billion for Ukraine is floated by the European Union.
European Union officeholders and diplomats are exploring a new agenda to bypass Hungary’s firmly held veto on military aid for Ukraine, which has accrued an impressive backlog of €6.6 billion and become an immense source of frustration in Brussels.
The plan, still in the very early phases, will involve tweaking the European Peace Facility (EPF), the off-budget instrument the bloc has been using to partially compensate member states for the weapons and ammunition contributed to Kyiv. The main concept on the table is to allow member states to make financial assistance to the EPF on a voluntary basis, rather than a mandatory one.
Can voluntary contributions resolve the funding stalemate?
According to officials and diplomats, the control from mandatory to voluntary would be acceptable for Budapest, as it would reduce the country from chipping into the common fund and helping Ukraine’s resistance against the invading Russian troops.
“The idea behind this proposal is that no one can block,” stated a high-ranking EU official. “This tranche of the EPF, which amounts to €6.6 billion, has been blocked for a year of a half. It’s a lot of time, a lot of money, and it’s undermining our support to Ukraine.”
What are the potential risks of changing the EPF?
Pushing the EPF a voluntary tool could backfire, diplomats cautioned because it could set a dangerous precedent and drain the EU’s united front against the Kremlin, which has so far been established on an all-hands-on-deck philosophy. For some nations, an EPF à la carte could establish a hard sell before national parliaments.
The reform “raises a number of queries about the cascading effects, the operation of the apparatus in the longer term,” a diplomat stated. “It also raises a number of budgetary issues for member states since it’s no longer a compulsory contribution.”
The sudden nature of the plan suggests more internal reviews and negotiations will be needed before a conclusion is revealed. The switch in contribution to the EPF would need the unanimous support of all 27 member states. It is unclear how much of the €6.6 billion would be unleashed given the contribution from Hungary and potentially other member states, which might be released.
